A St Helens MedTech scaleup specialising in simulation training technology for surgeons has extended its capital raised to $20 million (£15m).
Inovus Medical partners with leading organisations such as the NHS, the Royal College of Surgeons England, and the American Association of Gynecologic Laparoscopists (AAGL) to deliver standardised surgical training to residents and surgeons in the UK and North America.
The company provides surgeons with lifelike models of human anatomy made from advanced ‘hydrogel’ materials. Its simulators are powered by its software platform, TOTUM, which allows surgeons to track their training and receive feedback from mentors online.
Most recently, Inovus closed a $9.3m round from NPIF II – PXN Equity Finance, which is managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II (NPIF II). In addition, Inovus has raised follow-on funding from the first Northern Powerhouse Investment Fund through Mercia, which has backed Inovus since 2018, and new investment from Texas-based MedTech investor Unorthodox Ventures.
The round was also anchored by a $1.3m investment from the Liverpool City Region Life Science Innovation Zone as part of the $200 million investment in the sector across the Liverpool City Region.
The business is working to replace outdated styles of learning, including operating room or bedside demonstrations, which Inovus says puts patients at greater risk. It will use the funding to expand its commercial presence in the USA general surgery surgical skills market, having already deployed its simulators across nearly 300 residency programmes to support OBGYN surgical skills training.
The funding will support the launch of new technologies focussed on flexible endoscopy, robotic surgery and advanced tissues that replace the need for training on pigs and cadavers. The funding will also support the introduction of the existing and expanded portfolio to new international territories with a focus on the rapidly expanding Middle Eastern and Asian markets.
Inovus was co-founded in 2012 by University of Manchester graduate Dr Elliot Street (CEO) and CTO Jordan Van Flute who saw an opportunity to improve the level of training available and tackle a lack of surgeon availability, which is estimated to reach a shortage of up to 19,900 surgeons in the US alone by 2036.
The most recent funding will support the continued investment in R&D and commercial expansion that the company has been making off its balance sheet over the last 24 months. The company plans to increase headcount by 20% with key hires across its USA commercial team operating out of its Tampa based offices. Additional commercial and operational hires are planned in the UK and internationally.
“We are at an exciting inflexion point for the business and having invested heavily in our operational and technology infrastructure over the last 24 months, we are now poised to drive commercial growth across our key territories and surgical specialities with this new investment,” said Dr Street.
“We are proud to welcome our new investors, PXN and Unorthodox Ventures, and are pleased to see the strong signalling from our existing investors Mercia and Hayfin, who continue to support the business and its mission to make surgery safer through better training.”
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Louise Chapman, NPIF II Fund Principal at PXN Ventures, said: “The North West has a reputation for producing innovative medtech businesses that perform strongly on the global stage and Inovus is no different.
“What Elliot and the team have built has the power to transform outcomes for patients around the world by making surgery safer through more modern and intuitive training. We’re pleased to be backing the business with NPIF II funding as it enters this next exciting chapter.”
Sue Barnard, Senior Investment Manager at British Business Bank, said: “Having originally secured investment from the first Northern Powerhouse Investment Fund, Inovus is a great example of how NPIF II continues to support ambitious businesses as they scale, providing access to the finance they need at every stage of their growth journey.
“Companies like Inovus are helping to drive economic growth across the UK, aligning with the Government’s Industrial Strategy and reinforcing the North’s position as a leading hub for life sciences innovation.”
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